Ozone-depleting Substances and Halocarbon Alternatives Regulations (SOR/2016-137)

Regulations are current to 2017-10-13 and last amended on 2016-12-30. Previous Versions

Marginal note:Consumption allowance not to be exceeded
  •  (1) A person who is granted an annual consumption allowance must ensure that it is not exceeded by determining their calculated level of consumption for each HCFC for a calendar year, and then adding together all of their calculated levels of consumption.

  • Marginal note:Calculated level of consumption

    (2) The calculated level of consumption for each HCFC — excluding HCFCs that were recovered, recycled or reclaimed when they were imported or exported — that is manufactured, imported or exported during a calendar year must be determined using the following formula:

    [(M × ODP) + (I × ODP) – (E × ODP) – (Di × ODP) – (FSi × ODP)]

    where

    M
    is the quantity manufactured during the calendar year;
    ODP
    is the ozone-depleting potential set out in column 2 of Table 3 of Schedule 1 for the HCFC in question;
    I
    is the quantity imported during the calendar year;
    E
    is the quantity exported during the calendar year;
    Di
    is the quantity imported during the calendar year for destruction under paragraph 54(1)(a); and
    FSi
    is the quantity imported during the calendar year to be used as feedstock.
Marginal note:Prohibition to transfer without authorization
  •  (1) It is prohibited for any person to transfer all or a portion of their annual consumption allowance unless the Minister allows the transfer under subsection (4).

  • Marginal note:Transfer may be temporary or permanent

    (2) A transfer is temporary if it applies to only one calendar year, and it is permanent if it applies to all calendar years up to and including 2029.

  • Marginal note:Application to Minister

    (3) The transferor and transferee must submit an application to the Minister for the transfer containing the information required by Schedule 4 and specifying whether the proposed transfer is temporary or permanent.

  • Marginal note:Conditions

    (4) The Minister must allow the transfer if the transferor has an unused consumption allowance that is not less than the quantity of the proposed transfer.

  • Marginal note:Written notice

    (5) The Minister must inform the transferor and transferee in writing of the decision concerning the application for a transfer and of their consumption allowances.

Marginal note:Grounds for refusal and cancellation
  •  (1) The Minister may refuse to allow or may cancel a transfer if the Minister has reasonable grounds to believe that the transferee is not able to manufacture, use, sell, import or export an HCFC in compliance with Canadian law.

  • Marginal note:Effect of cancellation

    (2) If the Minister cancels a transfer, the transferee must, without delay, transfer back to the transferor any unused portion of the consumption allowance.

Marginal note:Retirement of consumption allowances
  •  (1) A person may retire their consumption allowance by providing the Minister with a notice in writing to that effect containing the information required by Schedule 4.

  • Marginal note:Effect of retirement

    (2) A person who has retired their consumption allowance is not entitled to any further consumption allowance.

Manufacturing Allowance

Marginal note:Calculation of manufacturing allowance
  •  (1) The annual manufacturing allowance for an HCFC set out in Table 3 of Schedule 1 to which each person is entitled is determined as follows:

    • (a) for each calendar year that falls within the period that begins on January 1, 2015 and ends on December 31, 2019, in accordance with the following formula:

      A × B / C

      where

      A
      is 81.9 ODP tonnes,
      B
      is the quantity manufactured by a person for 2013, expressed in ODP tonnes, and
      C
      is the quantity manufactured in Canada, expressed in ODP tonnes; and
    • (b) for each calendar year that falls within the period that begins on January 1, 2020 and ends on December 31, 2029, by multiplying the manufacturing allowance granted for 2019 by 5%.

  • Marginal note:Written notice

    (2) The Minister must inform the person in writing of their manufacturing allowance.

Marginal note:Manufacturing allowance not to be exceeded
  •  (1) A person who is granted an annual manufacturing allowance must ensure that it is not exceeded by determining their calculated level of manufacture for each HCFC for a calendar year, and then adding together all of their calculated levels of manufacture.

  • Marginal note:Calculated level of manufacture

    (2) The calculated level of manufacture for an HCFC must be determined using the following formula:

    [(M × ODP) – (Dm × ODP) – (FS × ODP)]

    where

    M
    is the quantity manufactured during the calendar year;
    ODP
    is the ozone-depleting potential set out in column 2 of Table 3 of Schedule 1 for the HCFC in question;
    Dm
    is the quantity manufactured during the calendar year for destruction under paragraph 54(1)(a); and
    FS
    is the quantity manufactured during the calendar year to be used as feedstock.

PART 4HFCs

Marginal note:Application

 Despite paragraph 3(b), this Part does not apply to products containing or designed to contain HFCs.

Exporting HFCs

Marginal note:Prohibition — exporting HFCs without permit

 It is prohibited for any person to export an HFC set out in Table 4 of Schedule 1 without a permit issued under these Regulations.

Importing HFCs

Marginal note:Prohibition — importing HFCs without permit
  •  (1) It is prohibited for any person to import an HFC set out in Table 4 of Schedule 1 without a permit issued under these Regulations.

  • Marginal note:Authorized importation

    (2) Any imported HFC must be intended for a use for which a substance set out in Tables 1 to 3 of Schedule 1 has been used in Canada.

  • Marginal note:Refillable container

    (3) Any HFC that is imported for use as a refrigerant must be stored in a refillable container.

Manufacture and Use of HFCs

Marginal note:Prohibition — manufacturing HFC without permit
  •  (1) It is prohibited for any person to manufacture an HFC set out in Table 4 of Schedule 1 without a permit issued under these Regulations.

  • Marginal note:Authorized manufacture

    (2) Any manufactured HFC must be intended for a use for which a substance set out in Tables 1 to 3 of Schedule 1 has been used in Canada.

  • Marginal note:Refillable container

    (3) Any HFC that is manufactured for use as a refrigerant must be stored in a refillable container.

PART 5Essential Purpose

Marginal note:Exceptions — essential purpose
  •  (1) Despite subsection 13(1), sections 15 and 17, subsection 19(1), sections 40 and 41, subsections 42(1) and 43(1), sections 48 and 49, subsection 50(1), section 51 and subsection 53(1), a person may import, manufacture, use or sell a substance set out in Table 1 or 3 of Schedule 1 or a product containing or designed to contain that substance if the substance or product will be used for an essential purpose and if a permit is specifically issued under these Regulations for that purpose.

  • Marginal note:Essential purpose

    (2) An essential purpose is a purpose requiring the use of a substance or a product containing or designed to contain a substance, when that use is necessary for the health and safety or the good functioning of society, encompassing its cultural and intellectual aspects, and when there are no technically or economically feasible alternatives to that use that are acceptable from the standpoint of the environment and of health.

PART 6Notice and Application for Permit

Notice

Marginal note:Notice to Minister
  •  (1) A person who proposes to ship a substance into or out of Canada for the purpose of transit must provide a notice of shipment in transit to the Minister containing the information required by Schedule 2 at least 15 days prior to the date of entry into Canada or the date of exit from Canada.

  • Marginal note:Acknowledgement

    (2) The Minister must acknowledge receipt of the notice in writing.

Application for Permit

Marginal note:Required information

 An application for a permit must be submitted to the Minister and contain the information and documents required by the following sections of Schedule 5:

  • (a) in the case of exportation, section 1 or 2;

  • (b) in the case of importation, section 3;

  • (c) in the case of manufacture, section 4;

  • (d) in the case of an emergency use or a critical use of methyl bromide, section 5; and

  • (e) in the case of use for an essential purpose, section 6.

 
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